Suprema Specialties files for bankruptcy
have been under investigation, said it has filed for bankruptcy
protection and its chief executive has stepped down.
Gourmet Italian cheesemaker Suprema Specialties, whose finances have been under investigation, said it has filed for bankruptcy protection and its chief executive has stepped down.
The New Jersey-based company also said its independent auditors have resigned.
Suprema said it filed a Chapter 11 petition for reorganisation with the US Bankruptcy Court in the Southern District of New York.
The company has hired Nightingale & Associates to assist with its reorganisation and named Nightingale's Douglas Hopkins its new chief executive and chief restructuring officer.
Suprema said earlier this month that government agents searched its premises and removed records. Auditing firm Deloitte & Touche had been conducting an investigation into Suprema's financial statements.
Mark Cocchiola, whom the company relinquished his positions as president and CEO, will remain as chairman and a consultant.
Suprema officials were not immediately available for comment.
Chief financial officer Steven Venechanos also resigned in December. Suprema in January named food and dairy industries veteran Thomas Reed as its interim CFO.
The company also faces a slew of shareholder lawsuits that claim Suprema knowingly or recklessly disseminated false and misleading statements about its financial condition.
The Nasdaq market said on 24 December it would not resume trading in Suprema shares until the company provided more information about its internal probe and the resignation of financial officers.
Suprema said it is in discussions with its lenders to assure ongoing funding for its operations during the reorganisation process. The company said Nasdaq has informed it that its stock will be delisted at the end of this week.
